Democratic Midterm Wins Rattle Musk-Linked Stocks and AI Shares

A sharp market sell-off followed Democratic victories in key data-centre states. Reports said Tesla fell more than 11% on Thursday, while SpaceX was reported down more than 9%. The Nasdaq dropped more than 5% at one point, and the S&P 500 fell 3.8%. Chipmakers were also hit, with AMD down more than 14% and Micron falling as much as 17%. Investors are concerned that Democratic wins could bring tougher scrutiny of data-centre construction and the AI industry. Texas governor-elect Gina Hinojosa pledged during her campaign to pause new data-centre construction, according to the report. Elon Musk had spent nearly $450 million backing Republicans, including at least $45 million for Ken Paxton in Texas. One market strategist said concerns about AI spending returns are now converging with fears of slower data-centre development.

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